Getting regular haircuts and talking to “trusted” service providers opens the door to interesting conversations and unsolicited advice.
When we know someone, we often share ideas, talk about what is happening in our lives, and mention professional successes and dilemmas.
The other day my hairdresser, who is very proud of his title of Master Hairdresser, gave me another fantastic hairstyle. During our work together, I mentioned that the market is highly volatile and this is often a time when my clients question the effectiveness of their investments. I could see the excitement building in his eyes as he prepared to share his “guaranteed” investment advice, which he confidently stated couldn’t go wrong. “Oil,” he said, “buy oil companies because the conflict in Israel will cause huge shortages around the world.”
I gave him time to share his idea, perhaps too much time as he talked about this surefire solution to success in today’s market. Then I asked what companies he liked, to which he had no answer. I explained to my hairdresser that there are thousands of companies that deal with oil and choosing the right one is not that easy, and then I asked him if he had heard or read about the economy and the likelihood of a recession.
As he said, there was a change in his tone: “oh yes, we are definitely heading towards a recession.” I then asked him what usually happens during a recession, and he replied that “the economy slows down and everything goes south.”
I explained that if the economy deteriorated, perhaps unemployment would rise, fewer people would travel, less goods would be shipped, and there was a greater likelihood that the demand for oil would decline – which would likely cause the demand for oil to weaken and cause oil prices to fall.
My hairdresser thanked me for educating me and said maybe oil isn’t the best investment right now. I told him I appreciated his thoughts and let him know that he might be right with his idea, but we never know for sure what will happen in the stock market or in geopolitics. Some advisors get this right sometimes, but no one gets it right all the time.
Master Hairdresser is a title we deserve and my barber is undoubtedly an expert in his field. I have trusted him with my hair care for years and will continue to recommend him to my friends. But for the same reason I would never recommend buying sushi at a gas station, I won’t follow my hairdresser’s investing advice.
As with most professional fields, a financial advisor’s education does not end with the credentials they have, it is an ongoing, demanding requirement to maintain and learn better ways to help those who trust their advisor make more informed financial decisions.
I have spent decades studying the market, taking professional courses, earning an MBA in financial management, teaching financial management at the Naval Postgraduate School, and gaining credentials that put my education/hobby and passion for helping others to work. I am a financial advisor and I do wealth management to take care of my clients. Many of my clients call me Dad because I am always available when they want advice on whether to buy/sell their cars, houses, planes, boats, stocks, etc. I don’t always have the perfect answer, but always weigh the potential costs and benefits to help them to make decisions and Breathe Easier® about life!
